Chime Valued at $18.4 Billion as Stock Surges on First Day

Chime, valued at $18.4 billion as stock surges on first day, is making a powerful statement in the recovering IPO market. On June 12, the San Francisco-based digital bank began trading on the Nasdaq at $43 per share, nearly 60% higher than its IPO price of $27. Although the stock later settled at $39.90, Chime secured a fully diluted valuation of $18.4 billion.

The company raised $864 million in the IPO by selling 32 million shares of Class A common stock. Of those, 25.9 million came directly from Chime, while existing shareholders sold the remaining 6.1 million. Underwriters also received a 30-day option to purchase an additional 4.8 million shares. A powerful lineup of investment banks led by Morgan Stanley, Goldman Sachs, and J.P. Morgan managed the offering. Other participants included Barclays, Evercore ISI, UBS, and Deutsche Bank.

Chime built its brand by offering accessible, fee-free banking services through a mobile-first platform. Unlike traditional banks, Chime does not charge overdraft fees or require minimum balances. The company appeals to younger users and underserved communities by providing early direct deposit access, real-time transaction alerts, and sleek app design.

Chime earns most of its revenue from interchange fees, which are collected when customers use its debit cards. In the first quarter of 2025, Chime increased its revenue by 32% and posted its first quarterly profit. CEO Chris Britt believes there’s still massive room for growth. “We’re just scratching the surface,” he said. “Right now, we serve less than 5% of the 200 million Americans earning under $100,000. Our ambition is to lead that segment.”

Chime, valued at $18.4 billion as stock surges on first day, also marks a potential turning point for fintech IPOs. Kat Liu, vice president at IPOX, noted, “This kind of debut could trigger a domino effect. Other unicorns may now accelerate their own timelines.”

Backed by investors like DST Global and ICONIQ, and having raised $2.65 billion privately, Chime looks ready to scale further and redefine digital banking in the U.S.

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